Slide 1: Q2 2024 Earnings Conference Call
Q2 2024 Earnings Conference Call August 1, 2024 AAON Inc. 1
Slide 2: Forward-Looking Statements and Other References
Forward-Looking Statements and Other References Certain statements and information set forth in this presentation contains “forward-looking statements” and “forward-looking information” within the meaning of the Private Securities Litigation Reform Act of 1995. Except for statements of historical fa
Slide 3: Q2 2024 Summary
Q2 2024 Summary Net Sales $313.6M +10.4% Y/Y Gross Margin 36.1% +300 bps Y/Y EBITDA $81.9M +24.3% Y/Y Diluted EPS $0.62 +12.7% Y/Y Backlog $650.0M 23.5% Y/Y • 16.4% Q/Q AAON, Inc. 3
Slide 4: AAON Striving for Growth
AAON Striving for Growth AAON, Inc. 4
Slide 5: Q2 2024 Net Sales
Q2 2024 Net Sales (in millions) $350.0 Q2 Highlights $312.0 $306.6 $313.6 $300.0 $284.0 • Organic sales grew 10.4% $266.0 $262.1 $254.6 $250.0 $242.6 • Sales growth was primarily spurred by $208.8 the BASX segment, which realized year- $200.0 over-year sales growth of 58.3% • Parts sales growth +16.
Slide 6: Gross Profit Margin
Q2 2024 Gross Profit Margin 40% Q2 Highlights 37.2% 36.4% 35.2% 36.1% 35% 33.1% 30.9% Factors 30% 29.0% 27.0% Improved productivity 25% 22.7% Moderating material cost inflation 20% Improved price/cost +16.7% Competitive employee compensation 15% +11.9% 10% 5% 0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2022 2022
Slide 7: SG&A
Q2 2024 SG&A $60 18% Q2 Highlights 17% $50 • As a percent of sales, SG&A increased 16% y/y +80 bps to +14.6% $40 15% • The year-over-year increase to SG&A as (in millions) a percent of sales was primarily a result $30 14% of increased investments made in 13% technology, professional and legal fees,
Slide 8: Diluted EPS
Q2 2024 Diluted EPS $0.70 Q2 Highlights $0.62 $0.60 $0.58 • Year-over-year, EPS was up 12.7% $0.55 $0.56 $0.50 $0.47 $0.46 • In the quarter, we realized a tax rate of $0.44 22.1% $0.40 $0.34 • The Company’s estimated annual effective tax rate, excluding discrete $0.30 events, is expected to be appro
Slide 9: Balance Sheet and Liquidity
Q2 2024 Balance Sheet and Liquidity Restricted Cash, Cash & Cash Equivalents Debt Q2 Highlights $100 $85.9 • Balance sheet remains strong $20 $12.1 • Debt leverage is 0.3x $8.7 $0.3 $— $50 $38.3 • Cash flow from operations in the first $0 half of the year totaled $127.9 million, Q4 2023 Q2 2024 up f
Slide 10: Outlook
Outlook Q3 Guidance • Sales flat to modestly up year-over-year • GAAP EPS flat to down modestly year-over-year 2024 Guidance August 1st Guidance May 2nd Guidance Pricing contribution to sales growth: Mid-single digits Mid-single digits Volume growth: Flat Down low-single digits to flat Gross margin:
Slide 11: AAON Second Quarter 2024 Appendix
AAON Second Quarter 2024 Appendix AAON, Inc. 11
Slide 12: Non-GAAP Financial Measures
Q2 2024 Non-GAAP Financial Measures Three Months Ended June 30, 2024 2023 (in thousands) Net income, a GAAP measure $52,228 $45,682 Depreciation and amortization 14,486 10,962 Interest expense, net 367 1,543 Income tax expense 14,779 7,678 EBITDA, a non-GAAP measure $81,860 $65,865 AAON, Inc. 12